The insurance costs for property
protection and claims are managed by the
Risk Management department. The allocation of the
insurance costs are either directly allocated to a specific
budget unit or pooled for a common-based distribution. The
direct charging to specific benefit units typically occurs when
the Risk Management department pays for the premium coverage.
The common-based distribution of insurance costs and workers
compensation insurance costs are distributed by Cost
Accounting Services (CAS). Upon receiving the appropriate
information from the Risk Management department, common-based
insurance costs are allocated to the appropriate chart strings
in the following manner by CAS:

Building
and Contents - Prior to allocating the costs, CAS
obtains the updated building property valuation amounts and
property additions/deletions from the Risk Management
department. In addition, CAS contacts the receiving
departments
of the insurance costs to obtain the appropriate chart strings
to charge. Insurance costs for building and contents are
allocated based on the building property valuations.

Vehicles
- Throughout the year, CAS works closely with departments to
maintain a current list of active vehicles. All vehicles
should have a record in the Asset Management Peoplesoft module
and are inventoried on an annual basis. Prior to allocating
the costs, CAS obtains the vehicle insurance costs by vehicle
type from the
Risk Management department. In addition, CAS contacts
the departments who own the vehicle(s) and obtains the
appropriate receiving chart strings. Insurance costs are
allocated based on the type of vehicle and its life.
Vehicles that are older than 8 years or more are only charged
for liability coverage.

Workers
Compensation- Based on a periodical actuarial
study, a cash reserve level is adjusted to insure adequate
protection against workers compensation claims. The funding of
the workers' compensation reserve is decided by Risk
Management and CAS distributes the reserve increase to the
University benefit rates based on the payroll bases of the
benefit rates. Weekly workers compensation claims are posted
by CAS against the workers compensation reserve throughout the
year.

To ensure that
sufficient time has passed in the fiscal year to allocate costs
incurred during the year, the processing of these charges
typically occurs in March. Vehicles acquired or disposed of
during the fiscal year are assessed on whether its allocated
costs should be prorated based on its use during the year or
whether it should be charged for an entire year of cost.